McInerney looks to Middle East

HOUSE BUILDER McInerney Holdings is looking for opportunities in the Middle East to compensate for the property slump in its main Irish and British markets.

The company told shareholders at its annual general meeting (AGM) in Dublin yesterday that restricted mortgage availability and low consumer confidence mean conditions in Ireland and Britain remain tough.

Speaking after the meeting yesterday, chief executive Barry O’Connor said the group is exploring the possibility of entering other markets.

“We are looking in the Middle East, in Abu Dhabi and Saudi Arabia – we have a team down there,” he said.

Mr O’Connor said McInerney had already looked at entering eastern Europe, but had decided against it, and stressed that the company needs to look outside its traditional markets.

The company is focused mainly on building affordable homes for first-time buyers and on social housing.

Mr O’Connor said it had generated sales of £15 million (€16.7 million) from social housing contracts in England last year, and is on track to generate £25 million this year, with a further £25 million worth of deals in the pipeline.

Such projects get substantial support from the British government and are less vulnerable to general market conditions.

Overall in Britain, McInerney’s statement said that the market has begun to show signs of recovery.

McInerney is seeing a similar pattern in Ireland, with both sales and cancellations down on the early months of last year.

The group ended last year with €219 million in debt, after cutting its total liabilities by €47.5 million. It hopes to reduce the burden further in 2009.